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The flow battery market size is estimated to grow at a CAGR of 22.16% between 2022 and 2027. The market size is forecast to increase by USD 510.03 million. The growth of the market depends on several factors such as increasing demand for battery energy storage to address erratic nature of renewables, increasing development of innovative power storage technology, and the advantages of flow battery.
This flow battery market report extensively covers market segmentation by type (redox and hybrid), variant (large scale and compact), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for battery energy storage to address the erratic nature of renewables is the key driver for the growth of the market. The addition of new resources, such as renewable energy, has made the grid more complex and multidimensional than before. To manage these resources, utilities use energy storage systems (ESS) and control systems such as automatic generation control (AGC) to ensure grid stability. Because flow batteries are compact, have a long life span, and can operate in various temperature ranges, they can be used for grid energy storage and for renewable energy grid integration applications.
As the penetration of renewable energy sources increases, the amount of electricity that utilities must manage, as well as the uncertainty associated with its intermittent nature. This has forced utility companies to adopt sophisticated ESSs to manage and reduce pressure on the grid. With a rapid increase in the integration of renewable energy, the global flow battery market is expected to grow during the forecast period
Legislative support for battery recycling is the trend that shaping the growth of the market. Government legislation on battery recycling is mainly aimed at creating economically sustainable and environmentally friendly business models and ensuring the efficiency of recycling. Therefore, efficient recycling can also lead to ecological sustainability. Disposing of flow batteries impacts the environment in a variety of ways, for example, low-battery batteries can explode when damaged or exposed to high temperatures, metals such as vanadium and nickel used in storage batteries amount can contaminate groundwater and soil, and the electrolyte used in batteries is flammable and toxic.
Currently, the European Union has developed a directive for the collection and recycling of batteries. However, even in the EU, the current collection rate for a flow battery is very low. In South Africa, where there is no recycling facility for recycling or disposing of flow batteries, recyclable material is sent to other countries such as the US for processing. Therefore, regulatory support will lead to a higher flow battery recycling rate and boost market growth during the forecast period.
The decline in lithium-ion battery prices affects the growth of the market. The lithium-ion battery market is growing rapidly. As a result, there has been a drop in demand for other types of batteries, such as flow batteries. Furthermore, major lithium-ion battery manufacturers are working on technological advancements and trying to lower the price of lithium-ion batteries. Lithium-ion battery prices are expected to decline.
Due to the factors mentioned above, there has been an increase in the use of lithium-ion batteries in everyday applications, power grids, automobiles, and others. Additionally, companies are developing lithium-ion batteries with specific industrial and utility applications. This reduced the cost of lithium-ion batteries and increase demand for lithium-ion batteries. These factors will impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Flow Battery Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The redox segment is estimated to witness significant growth during the forecast period. Redox flow batteries are constructed so that electrolytes containing the active redox agent are stored in external containers. In a redox flow battery, the electrolyte can be circulated from the reservoir. Tank volume indicates the level of energy storage. Due to its attractive properties for extended energy storage applications, redox current batteries have attracted much attention.
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The redox segment was the largest segment and was valued at USD 130.27 million in 2017. A key component of redox current batteries is the membrane, especially the most widely used ion exchange membrane (IEM), which prevents the cross-mixing of positive and negative electrolytes while allowing the transport of charged ions during discharge. Moreover, redox line batteries are used in utilities, load balancing when there is highest and lowest demand as well as stand-alone electrical systems. Such applications of redox current batteries will boost its demand and in turn, drive the growth of the market during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Factors such as growing renewable power generation and the raised adoption of EVs and HEVs are driving the growth of the market in North America. The US is the dominant country in the North American flow battery market.
Due to its clean energy policy, the US government encourages investors to invest in electric vehicles and the renewable energy industry. Furthermore, the strong growth in renewable energy production in the region, particularly wind, and solar, has led to the need for on-grid energy storage, which increases the demand for flow batteries as grid storage technology is widely used. The integration of renewable sources with energy storage systems will boost the flow battery market during the forecast period.
Due to the COVID-19 pandemic in 2020, the flow battery market in North America witnessed a temporary decline. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions, which led to the resumption of industrial activities. Furthermore, rising renewable energy projects in the region will fuel the growth of the market during the forecast period.
The flow battery market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Flow Battery Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 22.16% |
Market growth 2023-2027 |
USD 510.03 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
21.75 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, Elestor BV, ENEROX GMBH, Gebr. SCHMID GmbH, HYDRAREDOX IBERIA SL, Invinity Energy Systems plc, Largo Inc., LE System Co. Ltd., Lockheed Martin Corp., nanoFlowcell Management AG, Nel ASA, Primus Power Solutions, Redflow Ltd., StorEn Technologies Inc., Stryten Energy LLC, Sumitomo Electric Industries Ltd., Vanadis Power GmbH, VFlow Tech Pte Ltd., VoltStorage GmbH, and VRB Energy |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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